Give up the Riester guarantee for more return?

Tilman Freyenhagen

Published on 15 June 2026 · Updated on 15 July 2026 · Managing Director & Partner, Alsterspree Verlag GmbH

The status quo: how the Riester contribution guarantee holds back your return

The statutory 100 percent contribution guarantee on the Riester-Rente does protect the capital you've paid in from nominal losses, but at the same time it drastically limits your return potential. To guarantee this safety, providers have to invest most of your contributions in low-interest, safe government bonds instead of using higher-opportunity equity ETFs. In low-interest-rate periods, combined with high product costs, this often results in a real return after inflation of close to zero percent^[1].

Dynamic value protection and the compounding effect you miss out on

The core problem lies in so-called dynamic value protection. This system automatically shifts your savings balance from equities into bonds whenever the market moves. In a market phase with falling prices, this means capital is pulled out at the low point and invested in fixed income, so you can no longer take part in the subsequent recovery. This mechanism blocks the compounding effect that matters so much over the long run. Over a term of several decades, this costs you substantial wealth growth, while the steady devaluation of money through inflation reduces the real purchasing power of your capital. With our subsidy calculator, you can simulate this effect for your personal situation, to transparently compare the long-term impact of switching.

For security-focused savers, this raises the question of how you define safety. A guarantee protects against nominal loss, but in the current market environment it almost certainly guarantees a real loss of purchasing power. If you're willing to give up the rigid statutory guarantee, the new Altersvorsorgedepot lets you tap into the return potential of global equity markets from 2027. For a well-founded assessment of your individual risk profile, our knowledge section is available to you, or you can get personal guidance from certified experts through our independent advice service.

The new Altersvorsorgedepot from 2027: building wealth without rigid guarantees

When you switch to the Altersvorsorgedepot, you give up the 100 percent contribution guarantee of the Riester-Rente. Whether this trade-off is worthwhile depends above all on your remaining term: over long periods, the significantly higher return potential of equity ETFs has historically won out, while over short terms the security of the guarantee weighs more heavily. The German Bundestag passed the legal basis for this new, state-subsidised account model with no rigid guarantee requirements on 27 March 2026^[2]. Our knowledge section helps you understand these far-reaching changes in detail.

Giving up guarantees and its legal basis

The new Altersvorsorgedepot stands out through the complete removal of expensive insurance wrappers. While conventional Riester contracts were legally required to guarantee 100 percent of the contributions paid in, this minimum guarantee is dropped entirely for the Altersvorsorgedepot. As a result, your contributions flow straight into broadly diversified ETFs, with no deductions for protection mechanisms. Under the Bundestag's decision, investors can choose their funds freely and so take part directly in global economic growth^[2]. The state-subsidised account therefore offers maximum flexibility for long-term wealth building, but it also requires security-focused savers to engage consciously with normal market fluctuations.

• Free choice of funds: investors can put together their own portfolio and invest up to 100 percent in equity ETFs.
• No more insurance wrapper: there are no high set-up and administration costs for classic pension insurance contracts.
• No contribution guarantee: the capital moves with the market, which maximises the compounding effect over the long term.

For savers accustomed to the absolute security of the Riester guarantee, this change of system represents an emotional hurdle. Mathematically speaking, though, the risk of losses over long investment horizons shrinks toward zero, while the expected return rises sharply once the high guarantee costs are removed. To find out whether switching is advantageous for your personal situation, you can use the subsidy calculator or seek advice to clarify open questions with an expert.

Comparing guarantee classes: 100 percent, 80 percent, or zero guarantee

With the launch of the new subsidised retirement provision on 1 January 2027, the rigid requirement that every contract must guarantee 100 percent of contributions paid in falls away. In future, savers can choose flexibly between three state-recognised guarantee classes to best reflect their personal need for security^[3]. While classic Riester contracts relied on the full contribution guarantee, the new Altersvorsorgedepot is available as a completely guarantee-free option. In between, a new 80 percent partial guarantee is being established as a compromise for security-focused investors.

From safety net to return brake: the price of the full guarantee

Anyone giving up the familiar 100 percent guarantee for an Altersvorsorgedepot is deliberately choosing to trade a rigid safety net for higher return potential. A full guarantee forces providers to invest most of the capital in low-risk but low-yield bonds, which massively holds back growth over long terms. With the Altersvorsorgedepot's zero-guarantee option, by contrast, your money can flow entirely into higher-opportunity equity ETFs, making the most of historical market returns. For a well-founded assessment, our Altersvorsorgedepot guides offer an in-depth analysis of all the advantages and drawbacks. The subsidy calculator also helps you transparently simulate the concrete effects of different guarantee classes on your expected pension.

For security-focused savers who shy away from the step into fluctuating markets, the new 80 percent partial guarantee can serve as a psychologically valuable bridge. It secures most of the contributions while still allowing a higher equity allocation than the classic Riester-Rente. If you're unsure which route best suits your own risk appetite, you can be connected with licensed experts through the independent advice service at Vorsorgedepot-Lotse.

The return trade-off: what giving up guarantees delivers over the long term

Anyone switching from Riester to the new Altersvorsorgedepot faces the fundamental trade-off between nominal security and real return potential. The classic Riester-Rente guarantees 100 percent of the contributions paid in. What looks reassuring at first glance turns out, in practice, to be a brake on returns, because providers have to invest most of the contributions in low-yield, safe fixed-income securities. The Altersvorsorgedepot breaks with this requirement. By dropping rigid capital-protection rules, your capital can flow entirely into higher-return asset classes. This lets you overcome the return disadvantage of traditional Riester contracts and benefit over the long term from the dynamics of world markets.

Historical data shows how worthwhile this step can be over long periods. A long-term investment in the broadly diversified MSCI World equity index delivered an average annual return of 7 to 8 percent in the past over savings horizons of 15 years or more^[4]. At this kind of performance, compounding acts like a massive lever over the decades. While a Riester contract, because it maintains a guarantee, often barely keeps pace with inflation, the unguaranteed assets in the account statistically grow well beyond the pure contribution value. The investment horizon acts as a natural risk buffer here, since short-term market swings have historically been reliably smoothed out over the years.

For security-focused savers, the rule is: the longer your remaining term to retirement, the more rational it is to give up the guarantee. To calculate the concrete effects for your personal situation, our subsidy calculator is available to you. If you're unsure whether this switch suits your individual need for security, the independent advice service at Vorsorgedepot-Lotse can help you make a well-founded decision and get support from experts. The knowledge section also has in-depth analyses on the new Altersvorsorgedepot. (Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.)

Assessing the risk rationally: why fear of losses is often unfounded

Is giving up the Riester guarantee an irresponsible risk? From a financial-mathematics perspective, for long-term savers the answer is a clear no: while the formal contribution guarantee reduces the return, the real risk of loss for a broadly diversified ETF portfolio, over an investment period of more than 15 years, has historically fallen close to zero. For security-focused savers, the step may feel unfamiliar, but the numbers speak a clear language.

The reason lies in the broad diversification across worldwide equity markets, which essentially rules out the risk of a total loss. The so-called cost-average effect also smooths out the risk in fluctuating markets: with regular, unchanged savings rates, you automatically buy more units when prices are low and fewer when prices are high. Historical data from the Deutsches Aktieninstitut shows that a savings plan on the worldwide MSCI World equity index, over an investment horizon of at least 15 years, has in the past never suffered a loss^[5]. By contrast, the Riester-Rente's contribution guarantee blocks higher-opportunity investments, because providers are forced to put large parts of the capital into low-yield bonds.

Note: not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG. Past performance is not a reliable indicator of future results.

So anyone with at least 15 years left until retirement can forgo the formal guarantee and benefit from a higher expected return. To analyse this decision for your individual case, our neutral knowledge section is available to you. You can also use the subsidy calculator to work out the precise effect of switching. If you're unsure or would like personal reassurance, we're happy to connect you with licensed experts through our independent advice service.

The switching process: how to transfer your Riester balance to the Altersvorsorgedepot

Switching from an existing Riester contract to the new Altersvorsorgedepot needs to be prepared carefully so you can benefit from the return advantages of modern ETF investments. A major advantage of the reform is that transferring the reserve capital saved so far stays tax-free^[3]. All state allowances and tax benefits received previously remain fully intact in this cross-provider switch, provided the capital is transferred directly into the new contract. This legal framework ensures that security-focused savers suffer no tax disadvantages when switching.

• Tax-free transfer: the entire reserve capital saved is transferred directly into the new Altersvorsorgedepot with no tax burden.
• Grandfathering of the subsidy: all allowances and tax benefits credited in the past remain protected when you switch.
• Statutory cost cap: the receiving provider may charge a one-off administrative fee of at most 150 euros for the entire switching process.
• Observe notice periods: depending on the terms of your existing Riester contract, you have to observe notice periods that typically range from three to six months.

A statutory switching-cost cap of a maximum of 150 euros applies to switching from Riester to the Altersvorsorgedepot, and it falls away after a contract term of five years. Before formally initiating the transfer, you should check the exact deadlines and conditions of your current provider. With the subsidy calculator, you can reliably compare the long-term impact of switching costs against your future capital potential. For detailed preparation, our neutral guide is also available to you.

Your personal retirement-provision decision: which path suits you?

The decision to give up the contribution guarantee of a classic Riester-Rente for the new Altersvorsorgedepot is not reckless speculation, but a deliberate trade-off. Whether this step makes sense for you depends primarily on your age, your remaining investment horizon, and your individual risk tolerance. For security-focused savers, giving up a nominal guarantee promise often feels risky. Viewed historically, though, this safety comes at a price: academic calculations show that rigid contribution guarantees can reduce the long-term return by two to three percentage points a year^[6].

An age check and your risk tolerance as a compass

The remaining investment horizon serves as the most important compass here. Anyone with more than 15 years left until retirement can, based on experience, calmly ride out normal equity-market fluctuations, since temporary price declines even out over time. For shorter terms under ten years, the risk of fluctuating prices without a safety net weighs more heavily. This calls for an honest assessment of your risk tolerance: are you willing to accept short-term paper losses in order to benefit, over the long term, from the return potential of broadly diversified equity ETFs? Our subsidy calculator helps you make this mathematical relationship tangible and compare the potential capital growth.

In the end, you don't have to make the decision between a guarantee and return potential alone. If you'd like to structure your retirement provision yourself, our knowledge section offers well-founded, neutral guides. If, instead, you'd like personal support in weighing up your individual risk tolerance, we're happy to connect you with qualified experts through our independent advice service. Note: all model calculations and comparisons serve information purposes only. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

Adequate support: when independent advice makes sense

The decision to give up the familiar 100 percent contribution guarantee of a Riester contract for the higher-return opportunities of the new Altersvorsorgedepot represents a considerable mental hurdle, particularly for security-focused savers. Although mathematical comparisons often favour switching, giving up guarantees comes with emotional concerns. Professional, neutral advice makes particular sense when you want to weigh up the risks of the transition individually, to avoid rushed, wrong decisions^[7]. An independent expert helps you build a well-founded risk profile that matches your personal life situation and your remaining investment horizon.

It's advisable to steer clear of commission-driven sales channels, whose business model is often based on selling new, in-house products with high set-up costs. Neutral advice, by contrast, looks at your existing Riester-Rente without bias and weighs the real value of the guarantees against the expected ETF market return^[8]. Through our portal, we offer you an independent advice service to connect you with licensed experts. This way, you move from purely numerical insight to a financial decision that holds up over the long term.

• Objective contract analysis: independent advisers assess the actual subsidy rate of your old Riester contract, including all allowances, and compare it with the new account.
• Individual risk tolerance: they determine how well you can handle the normal fluctuations of a pure ETF account with no contribution guarantee.
• Avoiding wrong decisions: a neutral perspective protects you from panic selling during volatile phases or prematurely giving up state subsidy entitlements.

It's worth using digital tools to prepare for this step. Our subsidy calculator gives you first, reliable calculations on the cost impact and the potential final capital. The knowledge section also offers in-depth guides on the legal BMF rules. If you're still unsure afterward whether you want to give up the guarantee, personal advice closes the remaining decision gap, so bare numbers turn into a confident course of action. Please note: the calculations from our tools are illustrative and do not constitute investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.